Labat Africa (JSE:LAB) Financial Strength: 0 (As of Nov. 2025)

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What is Labat Africa Financial Strength?

Labat Africa has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Labat Africa's Interest Coverage for the quarter that ended in Nov. 2025 was 210.47. Labat Africa's debt to revenue ratio for the quarter that ended in Nov. 2025 was 0.07. As of today, Labat Africa's Altman Z-Score is -3.19.


Labat Africa  (JSE:LAB) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Labat Africa has the Financial Strength Rank of 0.


Labat Africa Financial Strength Related Terms


JSE:LAB vs ZTS, UTHR, VTRS: Financial Strength Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Labat Africa Financial Strength vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Financial Strength distribution charts can be found below:

* The bar in red indicates where Labat Africa's Financial Strength falls into.



Labat Africa Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Labat Africa's Interest Expense for the months ended in Nov. 2025 was R-0.5 Mil. Its Operating Income for the months ended in Nov. 2025 was R97.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Nov. 2025 was R9.1 Mil.

Labat Africa's Interest Coverage for the quarter that ended in Nov. 2025 is

Interest Coverage=-1*Operating Income (Q: Nov. 2025 )/Interest Expense (Q: Nov. 2025 )
=-1*97.869/-0.465
=210.47

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Labat Africa's Debt to Revenue Ratio for the quarter that ended in Nov. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Nov. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(10.745 + 9.101) / 301.768
=0.07

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Labat Africa has a Z-score of -3.19, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -3.19 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Labat Africa Business Description

Other Exchanges LAO:Germany
Address 75 Maude StreetSandown, The Leonardo 14th Floor, Sandown, Johannesburg, GT, ZAF, 1709
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.